MyState Bank axes savings account rate

Photo by Abby Savage on Unsplash

Non-major bank MyState has cut the maximum interest rate on its Bonus Saver savings account by 25 basis points to 2.00% p.a.

The Hobart-based bank made the changes today, cutting the base rate on the account from 0.55% p.a to 0.30% p.a.

The bonus rate will remain at 1.70% p.a, as will the conditions to earn it:

• Deposit $20 or in more into your Bonus Saver Account each month
• Make five or more eligible VISA Debit card transactions from your linked account each month.
• Have a balance under $150,000

This is the second cut by the bank in just three weeks, after cutting its base rate on 1 November by 25 basis points from 0.80% p.a.

MyState also made significant cuts of up to 80 basis points on its investor and owner-occupier home loans last week.

After three cash rate cuts in 2019, many savings accounts rates are already at or approaching 0% p.a, leaving fewer options for savers.

*Data accurate as at 20 November 2019. Rates based on a savings balance of $10,000. Introductory bonus interest rate products not included. Sorted by total interest rate, then by provider name (A-Z).

Prior to this month’s savings account rate cuts, MyState had one of the most competitive interest rates on the market, ahead of neo-bank 86 400, Up Bank and Bank of Queensland (BOQ).

While each of these banks have made similar cuts of 25 to 35 basis points in recent months, they now offer some of the most competitive non-introductory savings account rates on the market:

The max rates listed above are also conditional upon meeting similar bonus criteria to that of MyState’s Bonus Saver account, such as:

• 86 400 Save Account: Deposit $1,000+ each month, balance under $100,000
• Up Saver: Make 5+ debit card or digital wallet purchases from your Up Everyday Account, balance under $50,000
• BOQ Fast Track Saver: Deposit $1,000+ each month to linked ‘Day2Day Plus’ transaction account, balance under $250,000
• UBank USaver with Ultra: Deposit $200+ each month into USaver Ultra or linked USaver account from a non-Ubank account, hold a USaver Ultra transaction account, balance under $200,000
• ME Bank Online Savings Account: Make 4+ tap & go purchases through your linked ME Everyday Transaction Account, balance under $250,000

MyState was approached for comment.

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